Cyanotech reports financial results for the third quarter of fiscal year 2018

[USA] Cyanotech Corporation (Nasdaq Capital Market: CYAN), a world leader in microalgae-based, high-value nutrition and health products, announced financial results for the third quarter and first nine months of fiscal year 2018, ended December 31, 2017.

Cyanotech Corporation (Nasdaq Capital Market: CYAN), a world leader in microalgae-based, high-value nutrition and health products, announced financial results for the third quarter and first nine months of fiscal year 2018, ended December 31, 2017.

Third Quarter 2018

For the third quarter of fiscal 2018 compared to the third quarter of fiscal 2017, net sales were $9,150,000 compared to $7,605,000. Gross profit was $4,240,000, with gross profit margin of 46.3%, compared to gross profit of $2,857,000 and gross profit margin of 37.6%. Operating income was $1,110,000 compared to an operating loss of ($173,000). Net income was $1,107,000 or $0.19 per diluted share, compared to net loss of ($349,000) or ($0.06) per diluted share.

“Cyanotech’s positive results directly reflect our continued, long-term strategic marketing focus on building our consumer brands, as well as improvement in astaxanthin production volumes compared to last year. We will continue to put emphasis on our Nutrex Hawaii consumer products to introduce them to a broader consumer market, and leverage our experience and reputation for quality. From a production perspective, we are striving to improve the consistency in our year-to-year production levels for both astaxanthin and spirulina.

“The net sales increase of 20% was driven by a 23% increase in sales of our packaged products and a 4.5% increase in sales of our bulk products. The increase in packaged sales is the result of growth in strategic channels, including orders to support January promotions that we didn’t participate in last year. The increase in bulk sales is related to the quarterly variance in the timing of orders. International sales represented 24% of net sales for the current quarter compared to 23% for the same period last year.

“Our gross profit margin increased by 8.7 percentage points. The current quarter reflects lower production costs for astaxanthin, which reflects an overall year-over-year production increase, and for Spirulina, which showed improvement in production compared to the same period last year. Gross margin was also favorably impacted by the higher mix of packaged sales, which deliver a higher gross profit margin.

“Net income increased to $1,107,000, or 12.1% of net sales, compared to a net loss of $349,000, or (4.6%) of net sales, an increase of $1,456,000 compared with last year. This increase is primarily the result of higher sales volume, lower production costs and flat operating expenses.”

First Nine Months 2018

For the first nine months of fiscal 2018 compared to the first nine months of fiscal 2017, net sales were $26,014,000 compared to $24,789,000. Gross profit was $11,463,000, with gross profit margin of 44.1%, compared to $9,563,000 and 38.6%. Operating income was $2,349,000 compared to operating loss of ($536,000). Net income was $2,083,000 or $0.36 per diluted share, compared to net loss of ($942,000) or ($0.17) per diluted share.

Trailing 12 Months ended December 31, 2017

For the trailing 12 months ended December 31, 2017 compared to the trailing 12 months ended December 31, 2016, net sales were $33,267,000 compared to $32,985,000. Gross profit was $14,124,000, with gross profit margin of 42.5%, compared to gross profit of $12,321,000 and gross profit margin of 37.4%. Net income was $1,810,000 or $0.32 per diluted share, compared to a net loss of ($4,996,000) or ($0.90) per diluted share.

Please review the Company’s Form 10-Q for the quarter ended December 31, 2017 for more detailed information.